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Tinka Resources Trades Down After Releasing Preliminary Economic Assessment

Kitco News

Zinc junior Tinka Resources hit turbulence after announcing its preliminary economic assessment today.

The company was down 17% to 26 cents a share as of 3 p.m. PST. The company's 52-week range is 21 cents to 56 cents.

The company hopes to turn its Ayawilca Zinc Zone project in central Peru into a mine.

The company highlighted the following:

- After-tax NPV8% of US$363 million and pre-tax NPV8% of US$609 million using metal prices of US$1.20/lb zinc, US$18/oz silver, and US$0.95/lb lead on a 100% equity basis.

- Initial Capex of US$262 million with after-tax IRR of 27.1% and pre-tax IRR of 37.2%.

21-year mine life with average head grades of 6.05% zinc, 18.3 g/t silver, 67.1 g/t indium, and 0.25% lead.

- Average annual production of approximately 101,000 tonnes of zinc recovered in concentrate and approximately 906,000 ounces of silver in a silver-lead concentrate.

- Leverage to zinc price: 20% increase in zinc price increases after-tax NPV8% to US$606 million.

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